Secure Trust Bank Share Discussion Threads

[papy02] 18/7/2013 14:36

Dave. Interesting post, thanks.

I have arbed by going long ARBB and short twice the amount of STB (via a Spreadex Mar 14 spreadbet). So the overall position should be market-neutral to any STB price change, it's just a bet on the pricing anomaly closing.

Looking at a chart of the two, STB is looking a bit stretched atm, but the 2x pricing anomaly broadly seems to have been there since the STB IPO:

{Edit, I removed the link to ADVFN chart of the two, as it was too long and mucked up the formatting of the entire thread. Just look at 2yr plot of ARBB and add STB as an overlay}

Any ideas anyone what is behind the pricing anomaly and what could cause it to close (or widen!) ?

I need to double check the dividend position but suspect it is working against me (so will cost me to keep the position open).

Many thanks for the idea.

[davebowler] 17/7/2013 14:57

I calculate you can buy these shares at a 50% discount by buying Arbuthnot shares.Each Arbuthnot share trades at £9.40 but as 70% owner of STB it holds £18.40 worth of STB and that's without taking into account the other businesses Arbuthnot owns!
Buy ARBB.

[davebowler] 12/7/2013 15:07

ARBB looks far too cheap at £9.and should catch up eventually.

[mikeja] 05/6/2013 19:47

Another acquisition?

[skyship] 05/6/2013 10:52

Moving on to new highs - comment anywhere or just quality showing through?

ARBB left behind at the moment...

[mikeja] 28/4/2013 16:03

EPS forecasts from 2 brokers are 111p for 2013 and 157p for 2014.However I would be surprised if there were no further acquisitions.The cheap way in remains ARBB which puts you in at the equivalent of about 1300p.

[mikeja] 28/2/2013 17:01

See my post on ARBB

[trader_3] 28/2/2013 16:38

Warning from CEO at STB re FSA decision today . share price tick up may be short lived !?! :-

Paul Lynam, chief executive of Secure Trust Bank, said Lord Turner's comments were "potentially encouraging news", but warned that it could lead to problems for existing challenger banks.
"We need to urgently clarify whether the challenger banks will get the same treatment as new entrants. If not, then the large banks will continue to enjoy their huge capital and funding benefits and the new banks will also be required to hold less capital than the established and profitable banks like us. So the quite perverse scenario could arise where the challengers actually become the challenged," said Mr Lynam.

[masurenguy] 11/9/2012 11:55

Shortlisted for the AIM Newcomer of the year award.

[davebowler] 23/1/2012 11:36

Hi Praipus,- just seen your query- its about 5% in each, but I got rid of MWB some time ago.
I've noticed your name on various of these threads.

[praipus] 22/11/2011 12:14

Hi DaveBowler, been browsing AURR, APT, ASCH, ICP, MWB, MVI and ASW. All look very interesting. If its not too personal how much in % (of portfolio) terms do you allocate to each of these?

Do you have a rule of thumb or method for doing so?

[praipus] 22/11/2011 11:53

This shows holding immediately before



Not holding just lurking.

[cnx] 06/11/2011 04:27

interested to find out who was favoured in the share placing